Car purchase agreement – what should it contain?

Why do I need a written purchase agreement?

To be able to show what you agreed. A verbal agreement is also binding, but in a dispute it becomes your word against the buyer's.

The agreement records what was sold, for what price, in what condition and on what terms. It also shows that the sale actually took place, which may be needed with insurers or authorities.

What should the purchase agreement say?

Everything needed to identify the parties, the car and the terms of the sale.

• Seller's name, address and personal identity number
• Buyer's name, address and personal identity number
• Registration number and chassis number (VIN)
• Make, model, model year and odometer reading
• Price, payment method and payment date
• The car's condition, known faults and damage
• Any warranties or disclaimers
• Date, place and both parties' signatures

What does 'sold as is' mean in the agreement?

That the buyer accepts the car as it is at the time of sale, including known flaws. The clause does not protect you if you concealed faults you knew about.

So write known faults into the agreement specifically – it is your best protection against later claims. Read more about the rules for private car sales.

Should I give a warranty?

Private sellers normally give no warranty. State clearly that the car is sold without warranty and that the buyer has had the chance to examine it.

If the buyer had the chance to examine the car, for example on a test drive or through a condition test, they generally cannot rely on faults that such an examination should have revealed.

How should payment be written in and made?

Write in the amount, payment method and date. Do not hand over the keys until the money is in your account – a screenshot of a payment is not the same thing.

Bank transfer is the most common method. Swish has amount limits set by the bank that are often too low for a car. Avoid large cash amounts and never accept a cheque.

Where can I find a template?

Free templates are offered by several listing sites and legal services, but you can also write your own. What matters is that everything above is included and that both of you sign.

Make two copies and let each party keep one.